Hortinvest launches extensive Lindis River cherry project
|New Zealand horticultural investment company, Hortinvest Limited has released a $15.5 million cherry orchard project at Central Otago to savvy investors seeking a slice of the premium cherry pie.|
|The 80-hectare Lindis River project near Cromwell is double that of Hortinvest's first cherry orchard and significantly bigger than most currently planted in the region. It is projected to send between 18-20 tonnes per hectare to market in the lucrative cherry season when it reaches full mature production by 2025/2026.|
Hortinvest project and orchard development manager, Ross Kirk, said the project would focus exclusively on cherries and encompass 53,000 trees, with a spread of proven varieties to lengthen the harvest period and capture the fast-moving Chinese New Year market globally and Christmas market domestically.
The project is Hortinvest's second cherry development since the company was founded in 2016 by seasoned horticulturalists Ross and Sharon Kirk in response to an unprecedented global demand for premium New Zealand cherries.
New Zealand exported more than 4,000 tonnes of cherries to key markets in Asia, Europe, the United States and the Middle East in the 2017/2018 season with Central Otago accounting for some 90 per cent.
"Hortinvest's point of difference is that as a fully integrated company, we source the land, purchase machinery, develop and manage the orchard, then pack, export and market our own fruit, using state-of-the-art orchard and packhouse systems," Mr Kirk said.
"There are no third parties clipping the ticket along the supply chain because we have the experience and skills ourselves to manage an orchard project from set-up to market.
"Therefore, all returns from the market go back to the orchard owners. For investors, this means the total cost of producing and marketing fruit is significantly lower than other horticulture investment models."
Mr Kirk said Hortinvest projected an internal rate of return (IRR) of 25 per cent over the 10 year project.
Lindis River would deliver leading-edge orchard management practices including a single leader growing system to maximise yield, he said.
"The single leader system, in which trees grow naturally upwards into an apex, with central branches trained outwards, requires less trees per hectare yet achieves a better yield. Picking is more efficient and fruit quality is superior because the cherries are less exposed to the elements," he said.
The Lindis River project is one of two 80-hectare Hortinvest opportunities currently seeking investors in the Central Otago region, he said.
"Hortinvest has secured the land by collaborating with sheep and beef producers who are seeking to diversify their businesses and have recognised the potential in horticulture," Mr Kirk said.
With seasonal labour a significant issue for New Zealand's fresh produce industry, Hortinvest was also working on long-term plans to develop temporary on-site accommodation for up to 500 pickers at its developments, he said.
Site provides growing advantages
|The natural elevation of the Lindis River project - up to 400 metres above sea level - meant the area was less prone to damaging frosts in the critical spring blossoming and fruit-set period between September and November, Mr Kirk said.|
"There are various ways to fight frosts. Our preference for this region is to use windmills which pull warm air down and stop buds and flowers freezing. We have budgeted for up to eight windmills for this project."
"Lindis River is also set on gently sloping ground with access to a good local water scheme and proximity to arterial trucking routes."
Mr Kirk said now that due diligence and extensive operational and capital budgeting for Lindis River was complete, the project Information Memorandum (IM) was available for prospective investors.
|Caption: Orchard foreperson Mariette Morkel and project and orchard development manager, Ross Kirk inspect this year's crop. |
Click on image for high res version.
Lindis River at a glance:
|An 80-hectare cherry orchard at Cromwell, Central Otago.|
Elevated site less susceptible to frosts.|
World-leading orchard practices and technology implemented by experienced horticulturalists.|
Single-leader growing system to be implemented.|
Eight windmills available to fight frost.|
Non-retractable bird nets to protect against birds and weather.|
Shareholding in a state-of-the-art packhouse equipped with high-tech systems and full traceability.|
A team with extensive growing, marketing (in both export and domestic markets) and compliance knowledge.|
Key investment features:
|A share in a $15.5 million cherry orchard development.|
25 per cent IRR projected for first 10 years.|
Returns begin five years after planting.|
Minimum investment of $750,000 required (spread over four years).|
Project closes on March 31, 2019.|
|Hortinvest offers a complete development and management package. Prospective investors should contact the team via the Hortinvest website.|
|Located in Central Otago, New Zealand, Hortinvest Ltd is the leading consultant in New Zealand's emerging and highly profitable cherry and horticulture industry. Hortinvest employs world-leading orchard management and packhouse systems to produce and export premium New Zealand cherries.|
(Issued: December 18, 2018)
|Issued by Aqua Public Relations on behalf of Hortinvest Ltd. For more information please contact:|
Project and orchard development manager
Aqua Public Relations
+61 7 3312 2505